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Stock Market Success Stories in India
Mumbai-based Housewife (A True Inspiration for Traders) Maintaining a perfect balance between family and stock markets is a skillful act and like her husband who is a sailor, she too, navigated herself through years like a ship to sea. Literally sailing through eight years with her husband, a NavalRead more
Mumbai-based Housewife (A True Inspiration for Traders)
Maintaining a perfect balance between family and stock markets is a skillful act and like her husband who is a sailor, she too, navigated herself through years like a ship to sea.
Literally sailing through eight years with her husband, a Naval Officer, Dhamankar, a qualified nutritionist and a former research assistant at UNICEF, flexed herself in stock businesses.
Yes, I am talking about Dhamankar, a housewife, who became a stock trader, a practicing stocks investor, for more than a decade and a half.
Though started her business in the baby food products, her interest in stocks grew predominantly by a passive participation in her father’s part time trading on blue chip stocks.
Moreover, she wanted to contribute more time in raising her children and this made her settle down in stock trading at home for about 6 to 7 hours a day .
After attending to her family needs, every day she would spend at least 30 minutes updating her knowledge on Corporate News, Stocks Analysis, Indian Economic Affairs, etc.
She says, her achievements and a high success in stock business is due to the kindest support of her in-laws and husband.
Qualifying Children in Chunks on Stocks:
Added to her regular work, she is educating her children about the derivative segment, commodities, and finds her children active participation in learning.
They show a keen interest to learn about candlestick, moving averages, and methodology to figure out charts.
She has a passion to teach beginners, and traders where she invites everyone who does like to learn on stock market trading.
Her advice to learners is to have patience, discipline and they can take advantage of her proficiency in Marathi, Hindi, and English.
Opinion on Stock Markets:
To her understanding, learning stock concepts and implementing in live markets are two different scenarios.
Through the process, she had managed emotions and continued to trade markets and never encountered sleepless nights.
She says patience and discipline are the two major issues you are supposed to maintain in order while stock trading.
Stock Market Drive:
Dhamankar took two years to understand the inside out of the stock market.
She had set small goals and wanted to make a regular income from trading and her set targets were between ₹2,000 & ₹3,000.
On making a decent money from her trading capital, say ₹5,000 in a day, Dhamankar did shut her trading terminal, she strictly followed her trading plan, no later modifications.
Dhamankar Investment Techniques:
Dhamankar makes a significant portion of her investments in building her asset management, systematic investment plan ( SIP), government bonds, gold trading, government schemes, & National Pension Scheme, NPS.
She has invested in the stocks for long term investments bearing in mind the scripts and sectors.
While selecting a script, she suggests checking for outperformers and under performers in any chosen sector.
An outperformer will rise when an index is on rise, and underperformer will perform well as the index begins to fall.
Self Accomplishments for her Family:
As a mark of her achievements, she had made a self-funded vacation to South Africa in 2020.
See lessStock Market Success Stories in India
Ashu Sehrawat, a Young Investor in Stock Market, How he Became a Millionaire in a Short-time? At a tender age of 22, Ashu Sehrawat grew up to become one of the most significant stock traders and is claimed to be a self-made millionaire. Became famous by making money in day trades, and swing tradeRead more
Ashu Sehrawat, a Young Investor in Stock Market, How he Became a Millionaire in a Short-time?
At a tender age of 22, Ashu Sehrawat grew up to become one of the most significant stock traders and is claimed to be a self-made millionaire.
Became famous by making money in day trades, and swing traders, Ashu Sehrawat’s online trading success is a measure of his trading strategies that are implemented through the experiences and lessons he learnt at every stock market trades.
Sought Inspiration from His Father:
After observing his father, Ashu Sehrawat stepped into stock trading entrepreneurship at an early age of 18.
Ashu’s father was a regular investor in blue chip companies and through the trading he maintained the discipline of buy and hold stocks, allowing them to appreciate over a long period.
Looking into his father’s stock building activity, he too drew attention towards making good money although it involves a risk.
Beginning Days in the Stock Trading:
Ashu Sherawat began to conduct research work on stocks and gathered knowledge by joining a penny stock chat club.
At the channel chat,
He was attentive in learning about purchasing breakouts, and eventually it became his preferred trading strategy.
His experience in the purchasing breakout strategy was bitter, each time he made an investment, the stock movement went against his trade plan and it made him lose all the available trading capital.
Steadily, he began to concentrate on his failures of purchase breakout strategy, took initiative in discussing with successful traders. Then, he took the task to figure out why traders do short selling and got connected with prospering traders to get his queries sorted out.
In the first step,
After sometime, he realised the fact that successful short sellers did shorting stocks that held no business rise in value. Further, he went on to study and evaluate short-selling strategies for a long time, later plunged into short trades.
In short trades, he began to buy low priced stocks of 2000 shares that fell to a price of 0.50 paise per share and profited INR 1000.00.
After that, he began to indulge in short selling techniques and almost became an addict to it.
In the next step,
He began to short equities that priced higher than the actual value and then he focused on the equities, in which, the companies had a poor progression and there were addition of debt and fluff news.
Set off Trading Strategies:
Ashu Sehrawat began to shortlist penny stocks by involving a filtering process to obtain compatible trading results. Then, he discovered that one requires patience and a high level of stock selectiveness that involves stock optimization.
Conclusion:
Ashu Sehrawat concludes by complementing digital technology that enables investors with easy to operate apps and adoption of highly intuitive interfaces.
Good expertise can help you explore the vast possibilities available in the ongrowing stock securities, and asset management markets.
See lessWhat are Double Bottom Patterns?
What Is the Double Bottom Pattern? In the double bottom pattern, to enter the long, the price range from neckline to the price objective is the ideal bandwidth to purchase the stocks. Know in detail about the double bottom pattern, neckline, price objective, in the upcoming lines. The stock charRead more
What Is the Double Bottom Pattern?
In the double bottom pattern, to enter the long, the price range from neckline to the price objective is the ideal bandwidth to purchase the stocks. Know in detail about the double bottom pattern, neckline, price objective, in the upcoming lines.
The stock charts create various graph patterns of the stock/forex/cryptocurrencies prices and each pattern symbolises the trend like bearish, bullish, or sideways.
In the case of the double bottom pattern, the graph represents the trend reversal, from bearish to bullish, which means, the stock price begins to move upwards, from low to high.
While you encounter the double bottom pattern, you can go for long positions that means to opt for buy options.
You can do it as the price touches the neckline or wait for the retracement ( a minor pull-back) and then consider long positions.
Whenever you find a breakout having significant stock volumes, it is a sign of a good trading signal and hence check for high trading volumes of the stocks.
Schematic Diagram: Double Bottom Pattern
Illustration of Double Bottom Pattern:
Every trading stock in the stock market shows a specific price pattern on the graph plane. Candlestick patterns are the most popular charts utilised for technical analysis.
The rough sketch drawn above characterises the price variations of stock over a period.
The graph takes a downward curve, rises to the highest point between the two troughs, and refers to the neckline.
Neckline is the price where you can observe the first correction. And, the graph falls back to the level of the previous low.
Then, further rises above the neckline level and after a short rise it pulls back to the neckline.
From there it rises to the price objective. The level of the price objective is the upward price movement, equal to the distance between the neckline and the first bottom.
Graphical Representation of Stock Price:
The stock takes a downtrend and reaches a low of INR 50, then rises to INR 60, and again falls back to 50.
The two lows of 50 are considered as first/second bottom, also referred to as the double bottom pattern.
As the graph rises above the second bottom, it is an indicator to say that the share price is accelerating to the upward movement.
Experts say that it is the reversal of the downward movement, also called the bearish reversal.
See lessWhat is the Double Top or M Pattern?
Double Top or M Pattern in Trading Stock traders can bank on the M patterns in which you can short the stocks that enable you to earn profits. Experts say the M patterns can form in a span of hours, weeks or even months altogether and the proper identification of it can help you yield more profits.Read more
Double Top or M Pattern in Trading
Stock traders can bank on the M patterns in which you can short the stocks that enable you to earn profits.
Experts say the M patterns can form in a span of hours, weeks or even months altogether and the proper identification of it can help you yield more profits.
In simple terms, these double top patterns are also known to be bearish reversal.
Below you can find lines defining M pattern and basic sketch that explain the formation of it.
Stock charts represent M patterns in the stock trading environment and it is price variations of the stock that provide a pattern of the ‘M’ form, also known as ‘Double Top pattern.’
M- pattern : A Representation of Bearish Reversal
The M pattern does form at the end of the uptrend.
A price reaches the highest position and takes a reversal and progresses for a while and again makes an uptrend movement touching the first highest position. It means, the price has attained the highest position twice and both positions get connected forming a trough.
The price reaches the highest level ( uptrend) in the first peak reflecting the resistance level, and then the price begins to decline ( downtrend), reflecting a potential reversal.
Further, the stock price takes an uptrend, reflecting a potential reversal, and it reaches the highest level in equivalence to the first peak, thus confirming it to be a resistance level.
From the second highest level ( peak) the stock price trails down, thus indicating a bearish trend.
A trader can apply for a stop loss order to limit the losses in case the price rises and usually it is done above the resistance level.
The best position is the support level where you ( trader) can make profit by taking advantage of the bearish trend.
Traders can place a stop loss order above the resistance level to limit their losses for a rise in stock price. They can also place a take profit order at the support level to take advantage of the bearish trend.
Caution:
A price break above the resistance level after the second peak can create a false alarm and you may fall prey.
You must wait for the confirmation of the bearish trend. Look-in for the breakout below the support level, and a retracement ( minor pullback), it is a sign of confirmation.
Therefore you can enter a short trade by taking the advantage of the Bearish Reversal.
See lessWhat is ABCD Pattern in Trading?
How to Use the ABCD Pattern ABCD pattern is the simple way to execute a sell put or the buy option Follow the thumb rule of ABCD pattern that explains the drawing of the geometric patterns and depending on the extension of the CD leg and the trend it forms, either buy or sell stocks. Remember ! FRead more
How to Use the ABCD Pattern
ABCD pattern is the simple way to execute a sell put or the buy option
Follow the thumb rule of ABCD pattern that explains the drawing of the geometric patterns and depending on the extension of the CD leg and the trend it forms, either buy or sell stocks.
Remember !
Fibonacci ratios do form the basis for the identification of resistance/support levels.
The same fibonacci ratios are applicable, and they form to be the key elements in defining ABCD patterns.
What Is all About the ABCD Pattern?
It is a chart pattern that represents three consecutive price swings. It forms the picture of a diagonal lightning bolt.
Fundamentally, it is a combination of four points, A,B,C,D forming three lines, with variations representing buy/sell positions.
Cutting across the various segments of stock trading like Forex, Commodities, Stocks, etc, these price swings relate different conditions like trends, and range bound, regardless of the timeframes.
From Point A, a new price trend forms, then the prices in the market retraces at B, and the trend again resumes at C. Further, the price goes for the next correction at D, here you can trade.
In the set example, you can find a pattern where in the trading signals keep on forming the ABCD pattern in isolation.
ABCD Pattern Rules:
As the prices move from A to B, the market is expected to be within range bound A & B.
Likewise, the same should be applicable for the prices moving from B to C, and C to D.
In the bullish moves, the ABCD pattern must have point C at a level lower than A, and D must be at a level lower than B.
In the bearish moves, the ABCD pattern must have point C at a level higher than A, and D must be higher than B.
How to Buy/Sell Stocks Using the ABCD Patterns?
Do open the market chart and find AB, likewise find BC.
Make sure that the retracement should reach 61.8% or 78% of the move from A to B.
By making use of AB, and BC lines you are expected to draw the CD.
Remember, a general principle, CD must be equal to AB. Moreover, CD must be 127.8% or 161.8% of BC, in terms of price and time.
Observation:
You must consider the CD leg and measure the price gaps and wide ranging bars, these shall indicate about the formation of an extension. Therefore, you can find the CD to be longer than the AB.
You will find a retracement at D, for a bullish ABCD market buy stocks, and for bearish ABCD then open a sell position.
See lessWhat is the 11am Rule in Trading?
What is the 11am Rule in Trading Experts have made observations on Candlestick chart patterns and evolved with a new dimension of analysis for stocks based on certain parameters. Keeping in view those, experts have defined a 11:00 am rule in trading. In short, it was confirmed that after attainingRead more
What is the 11am Rule in Trading
Experts have made observations on Candlestick chart patterns and evolved with a new dimension of analysis for stocks based on certain parameters. Keeping in view those, experts have defined a 11:00 am rule in trading.
In short, it was confirmed that after attaining a new high between 11:15 am and 11:30 am, EST.
Then, it is a probable fact of 75% to have the trending stock to close within 1% of the High of the Day (HOD).
Likewise, a stock after attaining a new low between 11:15 – 11:30 am EST, there is 75% probability of closing within 1% of the Low of the Day, (LOD).
Conditions Defining the 11:00 am Rule:
Several stocks differ from the 11:00 am rule, and experts have back-tested before ascertaining the 11:00 am rule.
The stock that is subjected to this rule must have a daily volume more than 2 million and the stock must belong to mega capital and hold a liquid options chain.
Note: A series of back tests on the $SPY/$SPX have been provided to be effective on the 11:00 am rule, hence you are advised to follow only stocks that relate to the mentioned ones.
Remember, the indicator seems to be perfect, it may not be suitable in all scenarios.
Indicator Tools Performance:
You will be able to identify the high of day, low of day zone on a regular daily session between 09:30 am and 11:30 am EST.
In the illustrated example below you will find the range taken between 09:30 am and 11:30 am and furthermore, the user can make a selection of cut off time @11:00 am, setting.
By applying the moving averages, you may find the stock breaks above the HOD, and the ADX representing a strong momentum to the upward direction, then in the chart, you can find candlestick graphs progressive with neon color.
If the trend is continuous, representing a bullish movement, then the indicator shows arrows under the formed candles that figures you to continue with the trade signals.
A similar fact shall apply if the stock breaks below LOD, and colors shall differ to show a downtrend representation.
The candlestick may develop a trendset and is represented by a cloud.
The cloud can refer to trail stop or long (re entry point) as mentioned in the chart below.
Trade Indicators Confirming the Three Scenarios:
In case the stock breaks out above the High of the Day Zone, then you can find the development of the uptrend.
Likewise, for a stock breaking out below the low of the day zone then you can observe the development of the downtrend.
While the trading is in progress, the candlestick chart may represent price action to be in a range then LOD/HOD can be identifiable to demand/supply.
See lessCan I Buy in Delivery and Sell in Intraday?
Can I Buy in Delivery and Sell in Intraday Before I get into details of delivery & Intraday trading, you must understand the nature of trade that goes into. In intraday, you will have to buy and sell the stock on the same day. For some reason, your preoccupation with other activity can make youRead more
Can I Buy in Delivery and Sell in Intraday
Before I get into details of delivery & Intraday trading, you must understand the nature of trade that goes into.
In intraday, you will have to buy and sell the stock on the same day. For some reason, your preoccupation with other activity can make you ignore the selling before 03:15 pm then the risk management team shall square off the position automatically.
In case you forget to square off the product (stock) then you will be fined INR 20.00 at the time of stock market closure.
Important Note:
In case of intraday, you can prefer margin from your stock broker in which you need not make a complete payment while purchasing a stock ( option buy) a portion of the stock shall receive leverage from your stock broker.
Delivery trading is a different ball game, once you buy a stock you are free to wait for days, or months, or years, the choice to make your selling goes in accordance to your willingness.
Important Note:
In case of delivery trading, you will have to make complete payment of the stock you are preferring to purchase and hence a greater portion of the money gets blocked in your delivery.
The payment for stocks involve cash and carry and the stock brokers do not entertain any leverage on, hence cannot receive margin support.
Now, your question is, can I convert my delivery shares into intraday shares and square off by the close of day’s stock market operations. You can do so.
Usually, you may opt for it when you find it essential for liquid funds. While converting into intraday, a portion of the bought share value will be credited to your trading account and the intraday stocks then will receive margin from your stock broker.
You can also prefer to convert when you realize that the delivery can create a loss to profit rather than.
Important Note:
On converting the delivery stocks to intraday stocks, you will find that there will be an alteration in the stock positions relatively. You will have to bear such losses though come out to be of little expense.
See lessWhat Happens If I Forgot to Sell Intraday Shares?
What Happens If you Forgot to Sell Intraday Stocks in Zerodha Stock brokers or banks that hold demat accounts of the trader play a responsible role in Intraday trading. Brokers like Zerodha, Upstox, ICICI Bank, Axis Bank, etc take the responsibility of their clients by automatically square off theRead more
What Happens If you Forgot to Sell Intraday Stocks in Zerodha
Stock brokers or banks that hold demat accounts of the trader play a responsible role in Intraday trading.
Brokers like Zerodha, Upstox, ICICI Bank, Axis Bank, etc take the responsibility of their clients by automatically square off the open positions (MIS Orders) at the closure of the stock markets.
It can happen when a trader for some reason is unable to buy/sell stocks before the stock market closes down.
Conversion: Intraday Trade into Delivery
The stock markets do suspend the trading of a particular stock on reaching the upper circuit limit, or lower circuit limit.
The stock market does convert the intraday trade into a delivery trade.
Depending upon the availability, the shares shall be transferred to the traders’ demat accounts or credited into stock brokers accounts.
Short Delivery:
It is a condition that arises from the fact that the trader executes open sale and the trading demat account runs short of stocks.
A buyer will have bought and paid for the stocks, and is unable to receive the stocks in his demat account. Such a situation can be encountered by the non-availability of the stocks in the demat account.
A situation of this sort can happen due to non liquidity of funds, or upper circuit.
The exchange will perform trading of stocks on behalf of the seller and pass over the stocks to the committed buyer.
During this period, the stock exchange will auction stocks with other sellers and deduct the money from the trading account to compensate for the loss incurred by the buyer.
Intraday Sell Order:
You must buy back the shares to square off the holding in sell order. Either, you must square off manually or automatically the sell order else your order shall be put to auction and your account will be debited with a price the stock is sold.
To avoid the applicable penalty, you can convert the shares from intraday to delivery stocks and wait for the next trading session.
In the next trading session, you can square off the original intraday sell position and safeguard from the trading penalties.
Stock Hitting the Upper Circuit:
The MIS/CO position held by the trader does carry additional risks. And, in the most possible scenario, one is unable to square off positions. Such a situation arises for stocks hitting the upper or lower circuit limit.
During such circumstances, a trader will have to confront overnight and auction risks with an inclusion of the leverage positions.
Open Sell Intraday Position:
A stock hitting the upper circuit price means a trader will find buyers and it is hard to see any sellers.
The stocks from the trader’s demat account shall be delivered to the stock exchange. And, subsequently the seller will get the negotiated price credited into the trading account.
In case, the trader does not hold the stocks for the option sell in the demat account. Then, the trader will have to confront the ‘short delivery,’ the stock exchange will perform an auction to purchase the shares on behalf of the seller and deliver it to the buyer of the sell trade on T+2.
The stock market shall apply an auction penalty to an amount equivalent to 120 % of the closing price on the date of sell trade.
Stock hits the lower circuit limit:
A stock hitting the lower circuit limit indicates that a trader will find only sellers and no buyers shall be available for trading.
Open Buy Intraday Position:
A trader will hold the open buy intraday position and incidentally, the stock hits the lower circuit limit.
By the end of Intraday trading you will have to square off the sell position because the trader entered and bought stock through the intraday.
As a result, the stock exchange immediately converts the intraday trade into delivery trade.
See lessWhat is 1 2 3 Trading Strategy?
1-2-3 Trading Strategy Mr. Victor Sperandeo made important observations in classic price patterns for treading reversals, and defined a 1-2-3 trading method. The trading pattern is formed based on the three consecutive price swings each swing stands higher or lower than the previous ones. The threRead more
1-2-3 Trading Strategy
Mr. Victor Sperandeo made important observations in classic price patterns for treading reversals, and defined a 1-2-3 trading method.
The trading pattern is formed based on the three consecutive price swings each swing stands higher or lower than the previous ones.
The three swings can be explained in this form:
The first swing number ‘1’ is the movement in the opposite direction of the existing trend.
The second swing number ‘2’ is considered as the correction swing.
The third swing number ‘3’ is the confirmation of the reversal and the beginning of a new trend.
The below diagram states the 1-2-3 trading setup and it aims at identifying a reverse bull trending to take a short position (buyback the shares).
To illustrate it you must carefully follow the schematic diagram in which, consider 1, 2, 3 as Pivot 1, Pivot 2, & Pivot 3.
Pivot 1:
It is in the highest point of the existing trend. It is here that the 1-2-3 strategy can be employed to derive profit from the reversal of the existing trend.
Pivot 2:
The stock price enters into retracement down in which, the stock price declines from the existing trend, or after a slight decline, the stock price experiences a short term rise.
It means, pivot 2 is the end of the retracement down, and if you observe the break of major bullish trend lines, they will definitely be a reflection of the bearish momentum.
Pivot 3:
The short term rise of the trend makes collapse and then remember the point must never be higher than Pivot 1.
In such a case, the trend is said to be significantly influenced by the bearish notes and as and when the market breaks below the level of Pivot 2, you must enter the short position.
Consider the Pivot 3 as the stop-loss for the ongoing pattern.
See lessCan I Convert Intraday to Overnight?
How to Convert Intraday to Normal Delivery in Zerodha & Upstox Functionally, you may not be aware of the fact that the conversion of Intraday stocks to normal delivery is possible and you can do it in a split second by taking the help of Upstox and Zerodha. Remember, both these companies providRead more
How to Convert Intraday to Normal Delivery in Zerodha & Upstox
Functionally, you may not be aware of the fact that the conversion of Intraday stocks to normal delivery is possible and you can do it in a split second by taking the help of Upstox and Zerodha.
Remember, both these companies provide you the conversion for free you will not be levied with a fee.
In the below lines,I will enlighten with:
Advantages of the conversion from Intraday to deliveries.
Conversion by deploying Upstox/Zerodha apps
After which, you can make the needful changes on your trading positions in the intraday trades.
Advantages of Conversion from Intraday to Deliveries:
Intraday can be comforting to trade as long as you are able to book profit but you can also convert your trade position to delivery, to cover up your incurring losses in Intraday trades.
Your delivery purchases may yield good returns on the same day then you can convert the deliveries to intraday and execute sell orders.
Market sentiments play a major role in the share price volatility and the bad news of the company can disrupt the share prices instantly, so you can control your lesses by converting to intraday and execute the sell order.
You may have bought shares on Intraday trade and good news can trigger the share price and lead to a decent return.
At times, the market expectations may make the share price go spiral, then you may long to hold the sell option to obtain more profit. For that, you will have to convert the intraday to delivery.
Limitations: Conversion from Intraday to Delivery, Vice Versa
The positions can be converted only with the availability of the margins.
Your delivery is entitled for conversion to intraday provided the delivery is purchased on the same day before the auto square off timing.
Simple orders are eligible for conversion from Intraday to delivery whereas the special orders like CO are not entitled for conversion from Intraday to Delivery.
Zerodha Mobile App:
Zerodha has released an app known to be Kite app, and with the aid of it, you can convert from Intraday to delivery and vice versa.
After signing in the Zerodha app, you will have to follow these steps to perform your objective of conversion.
Tap the portfolio.
And, then tap the positions.
On the position, tap to convert and then scroll up.
Tap on covert position.
The entire process flows in four steps and you can progress from stage to stage over the menu formats.
Upstox App:
To convert the stock position from Intraday to Delivery & Vice Versa, in simple steps.
Download the Upstox app from Apple Store/Google PlayStore and then register in the Upstox app.
Enter the portfolio section, and visit the positions book, and click for the order you intend to convert.
On the top right corner of the menu frame, click the convert button.
You will have to enter the quantity you want to convert.
Then, you must click the submit request for submitting your order.
See less